That whole Brexit event sure rocked the domestic stock and international equity markets last week. But that doesn’t mean that there aren’t some great deals to be had out there. When looking for which stocks you should be swooping in and buying here you should stick to the basics. I’m searching for stocks which analysts are still very bullish on in the intermediate term that do a majority of their business domestically. That’s why I’ve made today’s Bull of the Day the purveyor of fast food here in the US, Carrols Restaurant Group (TAST - Free Report) .
The company basically serves as a proxy for shares of Burger King. The company owns and operates 705 locations in 16 states. Analysts have been forced to jack up their earnings estimates for the company as they just keep on surprising to the upside. Last quarter analysts were looking for an 8 cent loss and the company came in at 5 cent EPS. The quarter before, the company reported 18 cents while analysts were only looking for 3.
So when looking at the current year, analysts had been looking for 53 cents sixty days ago. Now two analysts have increased their estimates, pushing our Zacks Consensus Estimate up to 58 cents. The increased estimates and recent surprises are a big reason for the Zacks Rank #1 (Strong Buy) the stock currently enjoys.
It’s a wonder that shares have been under so much pressure since late April. After trading up to $14.75, the stock has retreated all the way down to intraday lows Friday at $11.25. The momentum to the downside may have finally run out of steam as the stock retraced all of the move Friday and pushed back to positive territory at $11.90. With the Commodity Channel Index getting all the way down to -126 the stock is definitely oversold in the short term. I’m looking to add a position here with a stop just below Friday’s swing low. If it can leapfrog the 21-day moving average and the CCI crosses the zero line the stock could make a run at $13.50 over the course of the next several weeks.
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